Mine was one of those, a 1gb 5 year-old gen 1 nano. It was a christmas gift, so I didn't really want to part with it for sentimental reasons. I also couldn't be bothered with the hassle of packing up and sending off my iPod, waiting for weeks for delivery, etc. What a fool I was!
Last week I came round to the idea and filed a claim online, simply completing a few input boxes with the serial number on the back of my nano, my name and my address. 2 days later pre-paid packaging arrived at my flat. The next day my iPod was in the post winging it's way to Apple.
1 week later and 2 failed UPS deliveries later and my new iPod arrived. My 1st Generation 1gb nano is now half the size, touch screen 8gb 6th generation and it cost me nothing! I am so impressed with Apple over this and can't believe my luck. So, to any of those of you with an old iPod, it is well worth checking this out. My only regret is I didn't do it sooner.
Just thought I'd share!